5 Things You Need to Decide Before Investing in Property Abroad

As more baby-boomers get closer to that “golden age” of retirement, there is increasing interest in purchasing property outside the U.S., either as an investment, or a retirement escape. As enticing as the prospect may seem, there are five things that you need to know before a single dollar is spent.

Becoming an expat is a life-changing experience. By doing some advance planning, this can be one of the most enjoyable and profitable moves that you can make.

The Five Things Every Potential Buyer of Foreign Property Needs to Discover

Buying property in another country requires some exploration before signing on the dotted line. Here are five things to help you identify whether an investment is right for you:

1. 1. It Really Is All About Location. With so many destinations that potential expats can choose from, doing your research is more important than ever. Ask yourself why particular locations are attractive to you. Doing the research about those countries can help you narrow down your selection to the one that matches your requirements and dreams.
2. 2. Will This Be a Permanent Home, A Vacation Getaway, Or An Investment Project? After deciding on a location, determining what this property is going to be used for is an important step that can directly impact what you purchase and for how much. If this is going to be your retirement mecca, the bottom line might be higher than if this will just be a vacation getaway. If investing is the goal, balancing initial cash outlay with potential returns will be the major consideration in deciding on the amount to spend.
3. 3. Learn The Lay Of The Land. Laws governing ownership, taxes, the buying and selling process and even where property can be purchased differs widely from country to country. Learning the rules of the game ahead of time can help you avoid unnecessary problems or delays in being able to actually become an owner/investor of foreign property.
4. 4. Are You Considering Residency? Do you want to be a “permanent tourist” or an actual resident of the country you are considering purchasing property in? Learning the requirements for visa information and residency may also factor into the choice of where to buy.
5. 5. How Are You Going To Pay For It? Investing in paradise can often be more expensive than you might believe. Beyond the actual price of the property, living expenses, taxes, travel, transportation, are all costs that are part of an expat’s budget. Being realistic on how much you will have to spend to live abroad may be the most critical factor in such a major decision.

When Is the Best Time to Invest in Foreign Property?

Doing your expat homework can also help provide a timeframe for making your dreams of owning land in another country a real possibility. If all of the pieces seem to fit, there is no time like the present to make that leap of faith. Conversely, you may discover that there is additional preparation that is involved before making such a large financial commitment.

Start your planning today. Read online resources, contact other expats and investors who have “been there, done that” on social media, and above all, go and visit the places that call to you the most. The world is out there waiting and there is no time like the present to begin your quest.